The child tax credit paid families advanced payments on the credit in 2021, on the credit they’d have received in 2022.
The credits you received were based on the 2020 tax year because the IRS was not yet aware of what your 2021 return would look like.
This means if you saw a significant increase in income, you’d likely need to pay that money back to the government because you were not owed that.
What does this mean for the child tax credit and taxpayers who received it?
You may need to pay the money back as well.
Parents saw as much as $1,800 for children under age 6 and $1,500 for kids ages 6-17.
If you ended up making more than the maximum income required to qualify, you’ll end up paying it back.
That’s $75,000 for single filers and $150,000 for joint filers.
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